HSBC is Closing its Local Branch. Should I be Concerned?

I just received an email from HSBC stating that as ” part of a new strategy to focus on fast-growing emerging markets” they were selling their branches local to me to another bank. Part of this new strategy includes their plan to cut 30,000 jobs, but that doesn’t effect me directly. Nor does the closing of the local branches.

I don’t have my money at one of those physical branches, but I keep my emergency fund in an HSBC Direct online account. I realized early on that I simply don’t have enough in that savings to warrant chasing the interest rate from institution to intuition, and that it’s better to keep the number of bank accounts limited, so I kept my ING and HSBC accounts. HSBC had been offering a higher rate than ING until recently – HSBC now only offers 0.80% compared to ING’s 1.0%.

But I digress…

Even though I keep my money in their online account and never used a physical branch, it always gave me a cozy feeling to know that there was a branch nearby should I ever need to access one. So admittedly, it’s more of a psychological things than anything else, but with Capital One buying ING and now losing my local HSBC I’m feeling a bit more uncertain about my banking future…

PS: For those of you who are affected directly by a branch closing, here’s a link to the HSBC FAQ about the branch closings.

Related Posts:

• Why Do You Bank Online?
• 11 Things to Consider When Choosing an Online Bank.
• How to Find the Best Place To Put Your Savings.
• Best High Yield Savings Account Rates Of 2011.
• Capital One to buy ING Online.. So Long ING?

0% Apr Balance Transfer Credit Card For 12 Months From HSBC?

I’ve had a high yield, online savings account at HSBC for a number of years now, and I’ve had my share of 0% APR balance transfer offers from credit card companies but this is my first from HSBC.

It turns out that it isn’t really just for me, no matter how special I may think I am. HSBC is offering 5 different types of cards with 0% balance transfer rates. Each card carries the introductory rate for a full 12 months, has no annual fee and covers balance transfers and new purchases.

If you’re in the market for a 0% rate to transfer your debt to while you pay off the balance, then you may want to check out the offer site.

5 different types of cards.

Cash back

This card is geared toward the spender who pays off his balance and wants a little something extra from his card. The reward rate isn’t as good as some others out there, but there’s also no expiration or cap and it’s pretty straightforward.

• 1% cash back on all purchases
• no earnings caps or point expiration
• no complicated spending requirements or tiers
• 0% introduction APR on card purchases and balance transfers for 12 months
• No annual fees

Cash or fly rewards

If you do a fair amount of traveling (I don’t) and want something extra for your hassles, HSBC offers there Cash or fly rewards card. This card is basically either/or – a cash back card or free airfare card. It may be useful if you sometimes travel a lot, but not all the time.

• 1 point for every dollar spent – 25,000 points = 1 domestic roundtrip airfare with a maximum value of $400.
• Minimum points to start redeeming is 7,500.
• Book your own ticket or use HSBC travel agency
• no earnings cap or points expiration
• no blackout dates
• 1% cash back option
• 0% introduction APR on card purchases and balance transfers for 12 months
• No annual fees

HSBC PLUS rewards

This card is more in the mode of a traditional rewards card in that every purchase gets you points and those points are traded in for gifts, flights or hotel costs.

• 1 point for every dollar spent
• redeem points for flights or hotel stays or gift cards
• no earnings cap or points expiration
• 0% introduction APR on card purchases and balance transfers for 12 months
• No annual fees

Platinum simplicity

This is the no frills, no clutter card. Oh, it’s also the no rewards card. Just a 0% intro APR for 12 months. Period.

• 0% introduction APR on card purchases and balance transfers for 12 months
• No annual fees

Secured

The secured card is great for building or rebuilding your credit history. It does have an annual fee, and some other restrictions, but let’s face it – if you need this card it’s because you’re a credit risk to some degree.

• $35 annual fee
• Credit line set by consumer with minimum $300 and maximum $5,000 deposit.
• Online access to account 24/7
• worldwide mastercard acceptance at 25 million locations

One Last Word.

The rate for each card after the introductory 12 month 0% is a variable APR between 12.99% and 19.99%, depending on your credit history. The 0% introductory APR does not apply to cash advances, but those are evil and you wouldn’t use them anyway, would you? No? Good.

Also, don’t default. That goes without saying, right? But just in case it doesn’t, remember that your rate will jump to somewhere between 27.24% and 31.99% if you default.

0% transfer card offers can be a real life line to someone serious about paying off his balance. I used one to stop the interest clock while I paid off my credit card debt and it saved me hundreds (if not thousands).

Related Posts:

• Balance Transfers – Simple Solution or Debt Enhancer?
• 6 Things You Should Know About 0% APR Credit Card Offers.
• My Wife Just Got a 0.99% APR Transfer Credit Card Offer, What Does This Mean?
• HSBC is Closing its Local Branch. Should I be Concerned?
• Is 25 Credit Cards Too Many?

HSBC Direct Increased its Rate!

I just got an email from HSBC Direct saying that they’ve upped my interest rate to 3.5%! WooHoo!

Most of the time, when I say “WooHoo” it’s dripping with sarcasm but this time I really mean it. It was a very pleasant surprise. The rate is effect until August 15, 2008 and may adjust after that, but 3.5% is a very decent rate with the federal funds rate so low (currently 2%).

Of course, it’s all to get more money under their control since the amount they can lend and invest is dependent upon the amount of money deposited with them, but that’s OK because I use HSBC for my primary emergency fund savings anyway. It’s a win-win.

ING is also offering a savings incentive. They call it their Automatic Saver Sweepstakes:

“Every month that you have a recurring deposit of at least $100 with an Automatic Savings Plan or Direct Deposit into your Orange Savings Account or Electric Orange, you’ll be automatically entered to win. This will give you a chance to win one of five $1,000 prizes every month, or our Grand Prize – $30,000 to be paid to your Orange Savings Account or Electric Orange. That’s right we are giving away a total of $60,000″

I LOVE ING, but since HSBC pays more interest, I keep the majority of my savings with them and use ING for smaller, goal oriented savings: new computer, sewer and water bills, etc…

For a free $25 when opening an ING Direct Orange Savings account, grab a referral here.

It seems like ING and HSBC aren’t the only banks trying to squeeze out some more deposits. J.D. at Get Rich Slowly has a post title, “Current Deals and Contests from Online Banks“, that runs through ING, HSBC, Washington Mutual and more!

Related Posts:

• HSBC is Closing its Local Branch. Should I be Concerned?
• Capital One to buy ING Online.. So Long ING?
• ING Direct Orange Savings Referral Links.
• 11 Things to Consider When Choosing an Online Bank.
• New Debit Card Fees Got You Angry? Switch to a Local Bank.